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Commercial Hire Purchase (CHP) - Car Finance

Compare CHP against Leading Loan Products

At Jade we are driven by better interest rates and in this comparison table, we show you best rates comparison on different lending products. All you have to do is enter the loan amount and terms you’re seeking for your CHP and the corresponding repayment will be displayed.

Loan Amount $ Loan Term
Lender Loan Product Interest Rates From: Monthly Repayment
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*The purpose of the interest rate comparison table is to provide a guide only and for comparing the interest rates on different commercial loan products. Quoted repayments are based on advertised rates and do not include lender fees and charges. An offer made to you by a lender may be at a different interest rate and have a different repayment. Using this device is not an application, any indication of an offer, and is not a loan approval.

Jade Car Loans offers Commercial Hire Purchase (CHP) as a commercial finance products for the purchase of motor vehicles to be used for business purposes. CHP is an effective finance facility for many businesses that utilise a cash accounting method.

As with all major finance decisions and especially in regard to commercial finance arrangements, we advise that you consult with your accountant on whether CHP is the most suitable loan product for your business. Determining which commercial finance product best suits your business involves consideration of your business accounting method, treatment of GST and asset depreciation and tax deductions. On your approval, you are welcome to have your accountant discuss this matter directly with your Jade consultant.

Self-employed individuals, small businesses and large corporations are eligible for CHP when the car is used primarily for business car finance purposes. The car may be new or second-hand. If you’re a tradie buying one vehicle, a small business replacing an existing vehicle or a large company expanding your fleet, contact Jade and one of our consultants will explain how we structure your CHP loan to optimise the benefits to your business.

Commercial Hire Purchase Car Finance: Key Features

A CHP car loan agreement involves the lending company essentially purchasing the motor vehicle on behalf of the borrowing business and for a set monthly hire payment, hiring the car back to the borrowing business. Your business, the borrower, has full use of the car over the term of the CHP agreement while the lender retains ownership in title until all repayments including any balloon payments are finalised.

  • Jade structures all motor vehicle CHP agreements on the basis of our low car loans interest rate promise.
  • The interest rate is fixed for the term of the CHP agreement.
  • CHP is best suited to cash or accrual method of accounting.
  • Term of the agreement is fixed. Your Jade consultant will structure the length of the loan to suit your cash flow and financial objectives.
  • CHP available on terms from 12 – 84 months.
  • Fixed monthly repayment for the full term of the CHP agreement.
  • Repayments are not tax deductible. Interest on the loan is tax deductible.
  • CHP agreements may include a balloon amount, which is either a fixed dollar amount or percentage of the value of the vehicle. This is fixed and payable after the repayments are finalised.
  • GST on the purchase price of the vehicle is claimed by the borrower on their next BAS.
  • No GST applies to the monthly repayments, interest or balloon.
  • GST applies to any fees and charges and is claimed in the same payment period.
  • Depreciation on the car can be claimed according the ATO guidelines.

On finalising all monthly payments and any balloon payment, the lender transfers ownership of the vehicle to the borrower.

Speak with a Jade Consultant to discuss a CHP agreement for your business vehicle. Call 1300 000 003

28 Nov Today's
best rates
Today's Business Rate
From {{Advertised Rate Only}} %*

*The Interest Rate is calculated on a Secured Loan for business use, effective 28/11/2023 and subject to change. WARNING: The interest rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different interest rate.

Today's Consumer Rate
From {{Advertised Rate Only}} %
Comparison Rate
From {{Comparison Rate Only}} %**

**The Comparison Rate is calculated on a Secured Loan of $30,000 fixed for a term of 5 years, new goods, effective 28/11/2023 and subject to change. WARNING: The Comparison Rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different comparison rate.

Car Finance Calculator

This finance calculator is developed to provide estimates based on the input data only. It does not allow for individual application variances. The loan offer and repayment amount you receive from your Jade consultant may be higher or lower than the result you have calculated.


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FAQs re Commercial Hire Purchase

Commercial Hire Purchase or CHP as it is commonly referred to, is a popular form of commercial finance facility which can be used for the purchase of many types of business equipment including motor vehicles. Despite the hire’in the title, this loan product is quite different from hiring a car. We have provided quite a full explainer on our web pages but go further here to address some very direct questions. After reading these FAQs, if you would like a very direct quote on a CHP for your car purchase, just give us a call on 1300 000 003.

Is CHP like hiring a car?   

No. When hiring a car, you enter an agreement for the use of a vehicle owned by someone else for a short term period. You use the vehicle, pay the hire fee and return the vehicle at the end of the day/week/month.


Commercial Hire Purchase is a form of loan which works towards the borrower owning the automobile. The borrower enters into a hire agreement with the lender. The borrower makes hire payments in accordance with the loan agreement and when all payments including any balloon are finalised, the borrower assumes ownership of the goods.


CHP is a versatile form of finance which can be used for the purchase of a wide range of business vehicles and equipment.

Are the repayments tax deductible?   

The full amount of the repayments are not tax deductible, only the interest portion of the repayment is deductible. The borrower realises a tax benefit or deduction, at the end of the financial year through the depreciation allowance. The allowed amount of depreciation is deducted from pre-tax income and reduces the tax obligation.


The car is depreciated as per ATO rulings as a certain percentage each year over the depreciable term of the asset. That term may be spread over a longer period than the actual CHP loan term. Cash or accural GST claims can vary on how the GST method is claimed against the motor vehicle. 


Jade recommends you discuss with your taxation professional or accountent when deciding on the best method for your business.

Will the interest rate change over the CHP term?   

No. Jade Car Loans arranges Commercial Hire Purchase vehicle finance at a fixed interest rate. The interest rate is negotiated individually for each customer. We source the cheapest rate that suits your requirements from across our large lender panel.


The rate is fixed at that amount for the entire term of the CHP agreement. The fixed rate then determines the fixed repayments to provide certainty in planning cash flow. The fixed interest rate applies to the repayments and to any balloon amount that you have chosen to include in your loan.


As a fixed rate, the interest payable will not vary with fluctuations in official interest rates as determined by the RBA.

How do I know if CHP is the best type of loan for my purchase?   

Jade offers a number of financing facilities for business vehicles – CHP, Leasing and Chattel Mortgage. The decision as to which one to select will depend on the accounting method used by your business, your approach to the balance sheet and financial objectives.


The treatment of GST differs for Leasing compared with CHP and Chattel Mortgage. With CHP the income tax benefit is realised at the end of year with depreciation while with Leasing, the repayments are tax deductible.


Your accountant is usually the best person to consult on these matters as they have an in-depth knowledge of your business structure. It is not the role of Jade to advise on those types of decisions. Our objective is to source you the cheapest CHP deal that suits your requirements.

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